BBDC - Barings BDC: Signs Of Improving Profile But Still Risks Remain
2024-05-18 11:04:47 ET
Summary
- Barings BDC (BBDC) reported decent Q1, 2024 earning results.
- Most of the main metrics improved relative to Q4, 2023 levels, and, importantly, the non-accrual base finally landed in an optimal territory.
- Yet, the increase in leverage, higher concentration of portfolio in weakly performing assets and a very thin dividend coverage still render the case suboptimal.
- In this article I assess Barings BDC Q1, 2024 earnings report and elaborate on why I still remain somewhat bearish against the BDC.
December last year, I issued a bearish article on a rather popular BDC - Barings BDC (NYSE: BBDC ) - making the case that considering the underlying risks, the potential return profile is not strong enough to warrant an attractive investment play. After some while, BBDC circulated its Q4, 2023 earnings deck, which did not reveal any meaningful fundamental improvements for me to change the stance ....
Barings BDC: Signs Of Improving Profile, But Still Risks Remain